Gold ends near $1,200 on soft dollar; highest since Oct

Gold prices settled higher on Tuesday as the dollar softened against the euro due partly to better-than-expected German economic data.

U.S. gold futures ended 1.1 percent higher at $1,197.10 an ounce, the highest close since since Oct. 30. Spot gold was last up 0.8 percent at $1,196 an ounce, slightly off an earlier high of $1,204.70.

The metal has rebounded about 6 percent from a 4-1/2-year low of $1,131.85 hit on Nov. 7.

"Gold is finding more strength after we broke the $1,180 resistance level from the fact that the dollar's rally has stalled," said ActivTrades senior analyst Carlo Alberto de Casa. "$1,250 is going to be a very important resistance area."

The dollar slipped 0.4 percent against a basket of major currencies, mostly due to a stronger euro after the ZEW survey showed German economic sentiment rose in November for the first time in almost a year, beating expectations and raising hopes of an improvement in Europe's biggest economy.

A weaker greenback makes dollar-denominated gold less expensive for holders of other currencies.